County Durham crisp maker Intersnack sold its trade and assets to KP Snacks, two years after acquiring the rival, accounts reveal.

The Pom Bear crisp maker UK arm – based at Tanfield Lea in County Durham – acquired KP in 2013 in a deal believed to have been worth around £500m.

A merger of the two firms got under way, with job losses coming as closures were announced for Intersnack sites and manufacturing and production of some products was switched to KP sites, including a plant on Teesside.

Two Intersnack sites outside the region were closed, a move which impacted on turnover and profit as latest accounts show. The firm’s workforce also dropped significantly, from 357 to 248 after the closures.

The intergration of the two firms, which also included a review of manufacturing and production facilities, has also led to KP Snacks becoming the commercial interface for both companies, and the intention now is for Intersnack UK to come dormant.

In a final set of full accounts for the North East crisp and savoury snack importer, manufacturer and distributor, Intersnack directors explain how many changes have taken place since the initial, 2012 acquisition.

In a review of the business within the accounts, the directors said: “During the period under review significant changes were implemented following the acquisition of KP Snacks.

“Intersnack had three manufacturing sites; Tanfield, Corby and Haverhill. In August 2014 the Haverhill site was closed. In October 2014 it was announced the Corby site would close and it closed in February 2015.

“The production and sale of nut products and Pom Bear snacks transferred to KP Snacks sites.

“In May 2015 KP Snacks purchased the remaining trade and assets of Intersnack UK which saw the ownership of the Tanfield assets and liabilities transfer into KP Snacks.

“The activities remain physically in Tanfield.

“An agency agreement was put in place to continue to transfer all risks and rewards into the KP Snacks business, so as at the end of this period Intersnack UK has become non-trading.”

The accounts show how Intersnack UK slipped into the red after making the factory closures.

Revenues for the 18-month period from January 1 2015 to June 30 2015 dropped from £66.8m to £49.7m, and an operating profit of £800,000 fell to a loss of £2.3m.

The directors said: “Turnover decreased during the period as a result of closing the Haverhill and Corby sites following a review of the manufacturing capability of the combined UK businesses and from the strategic withdrawal of loss-making products.

“From July 2014 KP Snacks Ltd became the commercial interface for noth businesses and assumed responsibility for all trading with customers.”

The report added: “The directors would like to record their appreciation of the efforts and continued commitment of all the company’s staff at each of its sites during a period of significant change within the business.”